🔑 Key Takeaways
- Persistence DEX is an AMM-based decentralized exchange live on both Persistence Chain and Babylon Genesis.
- Users can swap assets like BABY, WBTC, and LSTs through on-chain liquidity pools instead of order books.
- Liquidity pools include metastable, stableswap, and weighted pools, with bonding options for higher incentives.
- Liquidity providers can claim rewards in real time; bonded LP tokens require a 7-day unbonding period (or instant exit with a 5% fee).
- Persistence Interop, an intent-based BTC interoperability layer, is in closed beta and will eventually extend to Babylon Genesis.
Persistence DEX is a decentralised exchange for trading BTC, BTC-related asset, and Liquid Staked Tokens (LSTs).
Background
Persistence DEX currently has 2 main product offerings:
- Persistence DEX — AMM-based DEX supporting stablecoins, LSTs, and Bitcoin assets. Live on the Persistence Chain since 2022 and now also on Babylon Genesis.
- Persistence Interop — an intent-based Bitcoin interoperability solution enabling fast, secure, and zero-slippage swaps across leading BTC Layer 2s and sidechains (currently live in closed beta-mainnet). After being battle-tested on Bitcoin L2s, Bitcoin interoperability will be extended to the Babylon Genesis chain.
What’s Next
The upcoming Persistence v3 will merge both offerings into a single product to become a true BTCFi Liquidity Hub. Users will be able to swap between any version of BTC and BTCFi-aligned assets across multiple BTCFi chains.
Launched on Babylon Genesis as one of the first dApps, Persistence brings a DeFi platform to Babylon Genesis’ network.
Looking ahead, Persistence is exploring its evolution into a Bitcoin Supercharged Network (BSN), aligning even closer with the growing BTCFi ecosystem.
How Persistence DEX Works
Persistence DEX is live on both Babylon Genesis and the Persistence chain. It runs as an AMM-based DEX (Automated Market Maker), meaning it uses liquidity pools and algorithms to set prices instead of order books.
Swapping Assets
The swap interface lets users exchange one asset for another instantly through on-chain liquidity pools. When swapping (e.g. BABY for WBTC or XPRT), the smart contract calculates the output using pool reserves and an invariant formula.
Users input the amount, preview the output after fees and slippage, and confirm the swap via transaction.
Liquidity Pools
Instead of matching buyers and sellers, users trade against pooled assets. Each pool holds two or more tokens (e.g. BABY/XPRT). Supported pool types include:
- Metastable Pools for assets with a similar purpose but different price.
- Stableswap Pools for tightly correlated assets.
- Weighted Pools with customizable weights, up to 8 assets.
As the Babylon ecosystem expands, the DEX aims to support more pools for BTCfi-related assets, enabling BTCFi use cases from the outset.
How to Use Persistence DEX
Now, let’s walk through getting started with Persistence DEX on Babylon Genesis. We’ll cover setting up your wallet, funding it with the right tokens, and using the main features (swapping and adding liquidity to pools). Detailed guide here.
Getting started
To access the DEX, go to app.persistence.one and connect using any of the supported wallets such as Keplr, Leap, or Cosmostation.
Make sure you have sufficient balance to pay for gas fees on the Babylon Genesis network. You can acquire BABY tokens through participating exchanges or platforms supporting Babylon Genesis or by bridging using one of the options shared on the assets page.
Swapping Assets
Once the required tokens are on the Babylon Genesis network, you can seamlessly swap between assets, using the Persistence DEX.
To do so, navigate to the home page, connect your wallet and follow the steps below:
Type the amount of asset you wish to swap from.
The amount you will receive is shown below. To initiate the swap, click the button below and approve the transaction.
That’s it. You have now successfully swapped the assets.
Adding Liquidity to a Pool
To add liquidity to a pool and make the most out of incentives, navigate to the ‘Pools’ tab and select the pool in which you want to add liquidity.
After doing so, you should be able to see a button to ‘Add Liquidity’.
Next, enter the amount you wish to add as liquidity in the particular pool for the asset pair.
You can also bond your LP tokens for 7 days to earn higher incentives. After checking the relevant option, click on ‘Add Liquidity’.
Approve the wallet prompt to complete the transaction, and then you will be able to see your Liquidity in the dashboard.
To withdraw your liquidity, unbonding is required only if you selected the bond liquidity option. You can either wait for the 7-day unbonding period or choose instant unbonding by paying a 5% fee. If bonding was not selected, withdrawals are instant.
That’s it. You have now learned how to add Liquidity in a pool on Persistence DEX on Babylon Genesis Network.
Tips and Best Practices
- Liquidity providers can claim rewards in real-time on Persistence DEX, unlike on an epoch basis on most DEXs.
- Users need to bond LP tokens for a period of 7 days to be eligible for external incentives on Persistence DEX. Users also need to unlock their tokens after unbonding to remove their liquidity.
- The intent-based BTC swapping solution (Persistence Interop) is currently live on the closed beta mainnet. Access will be gradually rolled out to the broader BTCFi community, with support for additional networks in the following months.